Federal prosecutors have subpoenaed documents from the bankruptcy of failed education technology company AllHere, a once-lauded startup that boasted $12 million in venture capital and a $6 million contract with Los Angeles schools to build a buzzy AI chatbot .
The U.S. attorney’s office for the Southern District of New York served the grand jury subpoena in early September to the court-appointed trustee managing the liquidation of AllHere’s assets to pay off its creditors, according to records filed with a federal court in Delaware. A federal grand jury subpoena indicates that AllHere or someone associated with the company is the target of a federal criminal investigation by the Department of Justice.
Get stories like these delivered straight to your inbox. Sign up for The 74 Newsletter
Attorney Stephanie Wickouski, a partner at the New York-based firm Locke Lord, told The 74 the subpoena means that federal prosecutors “have a reason to commence a criminal investigation and that’s certainly an exceptional circumstance.”